Marriott Case Study 1)What is the weighted average cost of capital for Marriott? The weighted average cost of capital for Marriott is 11.64%. .4(cost of equity) + .6(cost of debt)(1- tax) Tax = Income tax/Income before tax = 175.9/398.9 = 44% Cost of debt = .5(.0895) + .4(.0872) + .25(.069) + .5(.011) + .4(.014) +.25(.018) = 11.25% B = 1.1 when d/e = .41 target d/e is .6 so.. B(a) = B(e) / (1 + (1-tax) D/E) = 1.11 / (1+.56(2499/3596)) = .80 B = .8 * (1+.56(5394/3596)) = 1.47
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Part 1: Present Value Problems Complete the following problems: 1.Suppose you invest $2,500 in an account bearing interest at the rate of 14% per year. What will the future value of your investment in six years? 2.Your best friend won the Wheel of Fortune in Las Vegas and has offered to give you $10,000 in five years, after he has collected his first million dollars. If you consider that if you had the money in your hand today, you would be able to get 12% annual interest, what is the present
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2. The purpose of the analysis was to evaluate and compare the financial statements of Magna Intl, and Linamar. The emphasis was to be able to identify between the both which is superior to the other. Comparing the gross and net margins between the two companies, Linamar has a slightly higher margin in year end which is a good indicator that the company was in good financial standing in comparison to Magna Intl. In terms of ratios comparing both companies together Linamar with a 1.13 year end quick
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Background The company I chose to do my annual report on is Samsung. Samsung is based out of Korea. When Samsung first started out they were making televisions and appliances such as wash machines and household items. The most recent item that Samsung is most famous for is its line of smartphones and accessories. Throughout the years Samsung has reinvented their selves by constantly evolving with technology. Through the years Samsung and Apple have been competitors of each other in the mobile market
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Parker J Investment Banking Even though Bear was involved with investment trades around the world, the Fed did not grant Bear a government bailout. The Fed did step in to help maintain stability for the market, but LTCM for Bear was out of luck. Bear differed from its downward pressure on global securities prices, market stability, the possibility and probability to crash fast and hard, and the market environment was simply too hectic. Well first and foremost, the biggest change that could
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A public corporation is part of the public sector. It is owned and financed by the government. Possible internal stakeholders could be employees (e.g. machine operators who depend on the company for wages etc.); managers (who supervise the processing and make decisions about investment etc.); trade unions (who represent workers and negotiate pay and conditions on their behalf). Possible external stakeholders could be the government (who puts up the money and expects it to be used well); taxpayers
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One of the main questions regarding accounting in public discussion are the purpose of accounting principles and their use for society. So why do we need accounts and why does the society rely on accounting since medieval times? Frankly spoken society needs accountants since they are necessary for businesses to grow and flourish. Accountants help to solve adverse selection and moral hazard issues resulting from imperfect information within the company and with external parties which could result
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ScenarioThe bank of TSB (Lloyds bank) is an investment bank involved in selling securities such as stocks and bonds to the public, as well as traditional scope of business such as deposit and loan. After graduation, you decided to join the bank as a financial advisor, to advice about market trends in specific securities, such as stocks, bonds, mutual funds, limited partnerships, and commodity pools, and the real estate such as coins, precious metals, then providing a selective list of products, finally
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| Pan-Europa Foods Corporate Strategy Analysis Prathibha Vemulapalli Cleary University 1. Pan-Europa should not cut the dividends as it might signal a lack of faith in future to its investors and shareholders. Selling new stocks at the current low price to raise the capital is also a bad idea that can potentially put the shareholders in dilemma. They must improve the performance to make the investors come forward to invest in the business. They should concentrate in decreasing the capital spending
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A recent article published in Corporate Compliance Insights discusses the importance and benefits of internal audit functions to publically traded companies and potential investors. Author Richard Chambers, CEO of the Institute of Internal Auditors, begins with a bold statistic stating 55% of Americans invest their hard earned money in the stock market, leaving their future financial well-being in the hands of the companies in which they invest in. With this many Americans turning
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